The document provides an overview of the book "Built to Last" which analyzes characteristics of 18 visionary companies that have achieved long-term success. It finds that visionary companies are focused on preserving their core values and purpose while continuously stimulating progress, rather than just profits. They also develop leadership from within and set ambitious goals to constantly improve.

1. Book Review
By
Furquan Abdul Razzak

2. About The Authors
Jim Collins
Jerry I. Porras

3. Jim Collins
• He is a professor at the Stanford Graduate School of Business
• Received the Distinguished Teaching Award in 1992
• In 1995, he founded a management laboratory in Colorado
• Served as a senior executive at CNN International
• In his free time, he loves to rock climb and has made it a
point to conquer Yosemite Valley.

4. Jerry I. Porras
• He is currently a Professor of Organizational Behavior
• BSEE from Texas Western College in 1960
• MBA from Cornell University in 1968
• PhD from University of California, Los Angeles in 1974
• In 1972 he joined the Stanford University Graduate School
of Business as a professor
• He is the author of many well know books

5. About The Book
• More than One Million copies sold
• Translated into 13 languages, won the best seller status in
North America, Japan, South America & parts of Europe
• The book is the result of a thorough research for about 6
years
• Over 60.000 pages of documents regarding 36 companies
(18 visionary and 18 comparison companies)
• The objective of finding those characteristics that help a
company become market leader and last among the top
companies even more than 100 years
• Built to Last is an analysis of how visionary companies
should operate

6. Introduction
 What is VISIONARY COMPANY?
 Criteria for Visionary Company
 Premier institution in its industry
 Widely admired by Knowledgeable business
 Made an indelible imprint on the world
 Had multiple generation of chief executives
 Been through multiple product life cycle
 Founded before 1950
 Selection Process-
 Surveyed 700 CEO‟s from 200 companies
 The youngest company was founded in the year 1945 and the
oldest was founded in 1812

7. Visionary Companies and Comparison
Companies
Visionary Company Comparison Company
3M Norton
American Express Wells Fargo
Boeing McDonnell Douglas
Citicorp Chase Manhattan
Ford GM
General Electric Westinghouse
Hewlett-Packard Texas Instruments
IBM Burroughs
Johnson & Johnson Bristol-Myers Squibb
Marriott Howard Johnson
Merck Pfizer
Motorola Zenith
Nordstrom Melville
Philip Morris RJR Nabisco
Procter & Gamble Colgate
Sony Kenwood
Wal-Mart Ames
Walt Disney Columbia

8. Best Of The Best
Imagine how different the world would have
looked and felt without the great companies?
Research Process (Six Steps)-
 What companies should we study?
 A Comparison Group
 History and Evaluation
 Collecting the Data
 Harvesting the fruits of our labor
 Field testing and application in real world

9. Clock Building, Not Time Telling
“ The builders of visionary companies tend to be clock
builders, not time tellers”
 THE MYTH OF “THE GREAT IDEA”-
 TI started with great idea HP did not
 Sony had no specific product idea, while Kenwood appeared to have a specific category of product
in mind.
 Wal-Mart had no great idea of retailing while Ames had.
 The Company itself is a great creation
 The message for CEO’s, Managers and Entrepreneurs

10. NO “ TYRANNY OF THE OR ”
( EMBRACE THE “ GENIUS OF THE
AND ”)

11. More Than Profits
 Core Ideology: Exploding The Profit Myth
 Make the clearest difference between the Visionary
companies and the Comparison companies
 Is There A “Right” Ideology?
Certain common factors seen
in the number of visionary companies
Great idea for having the core ideology
and preserving the core ideology as a
vital shaping force
Core Ideology = Core value + Purpose

12. Preserve The Core/Stimulate The
Progress
• The essence of visionary company is to preserve the
core ideology of the business while simultaneously
stimulating progress.
• This proves the “Genius of the AND” as a visionary
companies seeks to be both highly ideological and
highly progressive at the same time

13. Big Hairy Audacious Goals
BHAG (Big Hairy Audacious Goal)
BHAG should be understandable and clear
BHAG should not be inside comfort zone
Progress should be their even if leaders loose their trust
BHAG should always have a consistent growth
 Commitment and risks
The Goal, not the Leader

14. Cult Like Culture
• Ejected like a virus
Consequence
• Preserve the core and
Principle stimulate progress
• Ideology control /
Method Operational Autonomy

15. Home-Grown Management
 Visionary companies develop, promote and carefully select
managerial talent from inside of the company to great degree than the
comparison company. They do this as a key step in preserving their
core
 Quality of leadership separates visionary companies from comparison
companies
 As companies like GE, Motorola, P&G, Boeing, Nordstrom, 3M and
HP have shown in time and again, a visionary company absolutely
does not need to hire top management from the outside in order to get
change and fresh ideas
Management
Development Strong
& Succession Internal Preserve the
Planning Candidates core

16. Good Enough Never Is
 “How can we do better tomorrow than
we did today?”
 Comfort is not the objective in a
visionary company
 Stretching ahead to beat themselves
 Invest more of the profit back into the company
 Invest more in their people‟s training, spending a
significant amount in training centers

17. The End of The Beginning
 It „s become fashionable in recent decades for
companies to spend countless hours and money
drafting elegant vision, mission, value, purpose
statements
 But they are not the essence of visionary
companies
 The essence of visionary company comes
in the translation of its core ideology &
its unique drive for progress
 Visionary companies aligns its core ideology for
future progress

18. Conclusion
 Instead of telling time, built a clock that could tell
the time forever, even when you are dead or gone
 Find the purpose not the profits
 Preserve the core and stimulate progress
 Compete with yourself
 Seek consistent alignment
 Build the core purpose, vision
and value for your organization